Why Controlling 4.0?

Digitization is fundamentally changing companies – in terms of their value creation, their business models and their customer relationships. At the same time, uncertainty is increasing due to global crises, volatile markets and technological disruption. In this environment, controlling is facing new challenges. It must think beyond traditional tasks and position itself strategically.

On the way to Controlling 4.0 – How Controlling is reinventing itself for the future

The digital transformation is not only changing technologies and processes, but also the role, self-image and skills of controllers. The path towards Controlling 4.0 is not a single technological leap, but a comprehensive transformation – culturally, organizationally and strategically. This article highlights the key challenges and provides ideas on how controllers can remain effective in an increasingly digital world.

Digitization as an opportunity – not just a technical challenge

Digitization is not an end in itself, but must create value in controlling. That is the point, question analog processes, break down silos and use data in a targeted manner. Traditional controlling – characterized by the aggregation of figures, standard reports and routine activities – is increasingly reaching its limits. Standardization and automation are taking over simple tasks, while controlling has to focus on new roles: from “supplier of figures” to “provider of information”. Business Partner, from rapporteur to navigator.

The central questions are:

• Which tasks can be automated?

• Where do new technologies create additional benefits?

• How is the interaction between man and machine changing?

New role models in controlling: from guardian of the figures to architect of the decision-making basis

Controllers must see themselves more as designers as co-creators of the digital transformation. Three new role models are coming to the fore:

1. Data manager
   Controllers curate, refine and interpret data from a wide variety of sources. They ensure quality, consistency and transparency and thus create the basis for well-founded decisions.

2. Business Partner
   Controlling becomes a sparring partner at eye level – proactive, advisory, strategic. Controllers understand the business model, ask critical questions and help to identify opportunities and risks in good time.

3. Change Agent
   The digital transformation needs cultural support. Controllers can provide important impetus here – for example by mediating between specialist departments, moderating conflicts of objectives or through methodological expertise in projects.

These roles require strong further development of one’s own skills – from data analysis and communication to leadership without disciplinary responsibility.

Skills for the controlling of tomorrow: analytical, collaborative, strategic

The new world of work demands a new skills profile. In addition to sound business knowledge, the following skills are becoming increasingly important:

• Technological competence: Understanding how algorithms, automation and artificial intelligence work – and how to use them sensibly in controlling.

• Data competence: Identifying data sources, ensuring quality, performing analyses and communicating findings in an understandable way.

• Storytelling and visualization: The art of transforming data into convincing stories is becoming a key skill in management dialog.

• Collaboration and network competence: Controlling no longer takes place in isolation, but is embedded in agile, cross-functional teams.

• Self-management and the ability to learn: The speed of change requires permanent further development – both professionally and personally.

Organization in transition: from a controlling department to a networked function

The classic controlling organization is being put to the test. Other structures are emerging:

• Shared services and centers of excellence take over standardizable processes and bundle know-how.

• Business partners are integrated into the specialist departments on a decentralized basis – with close proximity to operational issues.

• Agile teams are created temporarily around data-driven issues – controllers contribute analysis and structuring expertise here.

• Governance and data management are controlled centrally to ensure quality and reliability.

This also means that the boundaries between specialist departments, controlling and IT are becoming blurred. Successful Controlling 4.0 requires a common understanding of data, goals and responsibilities.

Technological enablers: from Excel to AI

Technology is both a driver and a tool. The spectrum ranges from proven tools such as Business Intelligence and Data Warehousing up to advanced analytics, predictive forecasting and AI applications. But technology is not a panacea. The decisive factor is capability, Translating technological possibilities into real benefits.

This requires:

• Use cases with added valuethat are developed closely with the specialist departments.

• Pilot projects and experimental spacesthat enable rapid learning curves.

• A clear roadmapthat reduces complexity and provides orientation.

It is also important to note that not everything has to be developed internally. Cooperation, networks and external expertise can help to make progress faster.

Leadership in digital controlling: trust, transparency, empowerment

Controlling 4.0 also requires a new understanding of leadership. Traditional hierarchies are being replaced by Responsibility in networks replacedknowledge advantage through transparency and cooperation. Leadership today means:

• Creating trust in a complex, uncertain environment

• Providing orientation instead of setting guidelines

• Promoting personal responsibility and allowing diversity

Controllers who live this attitude can become catalysts for transformation – in controlling itself, but also beyond.

Conclusion: Controlling 4.0 is not a goal – it is a path

The digital transformation is fundamentally changing controlling. It is not about digitizing what already exists – but about rethinking the role of controlling: Strategic, networked, effective. Those who embrace this change will experience it: Controlling is more important than ever. Not as a generator of figures, but as a Navigator in stormy times.

Getting there requires courage, curiosity – and above all people who want to shape change.

The ICV publication series ‘On the way to Controlling 4.0’ (https://icv-controlling.com/shop/) takes a comprehensive look at this change. It provides impulses, shows good practices and identifies challenges. The focus is less on technology and more on people, processes and the mindset in controlling.